The Palatka daily news. (Palatka, Fla.) 1884-1888, 1887-05-14
Our Banking Bill.

Senate Bill No. l41, by Mr.. MchiHne,
is one of the most important now engag-
ing the attention of the legislature. In
IT'S principal features it follows closely
the model set out in the National Bank
ing Act so far as this can apply to
statute of the State, and also in its de-
tails in great measure. A great advan-
tage is thus gained because all doubtful
points have already been decided and
much litigation will probably be avoided
by reason of this prior adjudication.
As whole the Bill as proposed by MIR.
McKinne is an excellent one, but the
amendment which struck out Sec. %
was an improvement suggested by prac-
teal knowledge and we would urge
that the same fate overtake Sec. 23
which reads:
"SEcTIoN %. 1t shall be lawful for any
banking association organized under this
act, to establish branches or agencies OF
such banking association in any city or
town in this State, the capital being joint
and assigned to and used by the mother
bank and branches in definite proper
tions; Prorided, That public notice OF
not less than six months of the removal
or discontinuance of such branch or
agency shall be given, whenever the re-
movai or discontinuance of such branch
or agency shall be contemplated"
This establishment of an indefinite
number of branches for which the
mother bank is responsible may easily be
''more honored in the breach than the
observance" for it may become
II. L. oh. -AI
that no check is prescribed on
the exercise of this license, and
the Comptroller is given no authority
to interfere. The establishment of a
bank wherever needed is made easy
enough, and independent associations
may be formed over which all the safe
guards contemplated in the act
might be thrown, whereas these
branches or agencies seem to be, in
a measure, outside the law. We would
earnestly recommend the striking out of
this section because it implies the exer-
else of discretion which may degenerate
into licensed abuse and become danger
Gus to the people or arouse vexatious
litigation.
II, in one respect the bill is too full, in
another it is defective by reason of the
omission of q precaution which forms a
prominent feature of the National Bank
ing Act. Under the proposed bill ont
person, firm or association may borrow
all the available funds in the bank. W.
would suggest that an amendment be of
fered which would incorporate IN the
bill the meaning and intention of Section
5000, Chapter Nv, of the Banking Ac
which provides: 1.-The total liabilities u
any association, of any person, or OF any
company, corporation or firm for money
borrowed, including in the liabilities ol
company or firm the liabilities of the
several members thereof, shall at ane
time exceed one-tenth part of the amount
of the capital stock of such association
!. actually paid in. But the discount OF
bills of exchange drawn in good faitf
against actually existing values, and the
discount of commercial or business paper
actually owned by the person negotias
ing the same, shall not be considered a
money borrowed"
A careful study of the bill as drawn
by Senator McKinne has led to a warm
approval of its provisions except a
noted. The subject is a most important
one, and we would invite the special at
tention OF business men thereto so that
additions or cancellations may be sug
gested before it is too late.